As of the July, 2022, release via CMS

MEMORIAL HERMANN KATY

CMS id: 450847
23900 KATY FREEWAY, KATY TX 77494. County: HARRIS
System: MEMORIAL HERMANN HEALTH SYSTEM
CBSA: Houston-The Woodlands-Sugar Land, TX

The 208-bed, acute-care hospital had $60,608,995 in net service to patients*, with a total profit margin of 19.53301% in fiscal year 2021, the latest year available.
It spent 11.19% of its operating expenses on uncompensated care and reported $71,661 in Medicaid shortfall.

* For more about Net Service to Patients and operating revenue, please the finance section below.

Note: Medians are from acute-care hospitals with "complete" fiscal years. For more about how we calculated medians and cost reports in general, please click here.

Details

	2017	2018	2019	2020	2021
# of days in fyear	365	365	365	366	365
Ownership	nfp	nfp	nfp	nfp	nfp
Acute beds Median	152 118	152 118	152 119.5	152 118	152 119
Total beds Median	208 162	208 162	208 162	208 162	208 163.5
FTEs Median	935.00 788.06	966.00 793.42	1,031.00 806.03	1,036.25 787.61	1,183.00 804.34

Finances As they appear in worksheet G3 of the cost reports.

Note: Net Patient Revenue is considered operating revenue, which means Net Service to Patients is considered operating profit. Click here for more about cost report financials

Hospital cost reports are an enormously complicated dataset. There are whole organizations and an offical CMS vendor dedicated to helping researchers work with the data.
It's important to understand that hospital financials in cost reports are not organized in the same as other sources such as annual financial reports to bond holders.

The biggest difference is the concept of operating revenue and profit. Net Service to patients (NS2P), which is the sum of net patient revenue minus operating expenses, is considered the equivalent of operating profit according to the Medicaid and CHIP Payment and Access Commission (MACPAC). See the last paragraph of "Primary Data Sources" on page 55 of Annual Analysis of Disproportionate Share Hospital Allotments to States (PDF).

That would make Net Patient Revenue = operating revenue.

All this makes things challenging when comparing what's reported in cost reports to other sources. It becomes clearer when you consider that, beyond the purpose of reimbursement, cost reports are a tool for policymakers trying to understand the financial situation of a hospital doing the tasks specific to hospitals.

In other words, while a facility with a division that formulates drugs might include earnings from that as operating revenue in their corporate annual result, this is not central to the operations of a hospital caring for patients and so it is counted as "other income." (See below the financials section for more on "other income")

The healthcare consulting firm HMP, in a former partnership with Modern Healthcare, did develop a formula for estimating operating revenue closer to what one might find in other sources. We no longer use this for the following reasons:

The measure was not widely used beyond HMP and Modern Healthcare. Many hospitals had their own internal estimates of operating revenue and profit.
Because of this, there was confusion when reporting operating results for individual hospitals. There was often pushback when a facility's internal numbers did not match what Modern Healthcare was reporting.
The formula includes revenue from portions of the "other income" section, which may also include non-operating revenue. HMP themselves point out in a caveat on their site that they cannot exclude all non-operating revenue from their measure.

HMP's operating measure has proven problematic in the past for our reporting and the partnership with them ended years ago. It's best to not use a measure that we alone cannot defend.

	2017	2018	2019	2020	2021
Net patient revenue ? Median	233,177,518 150,932,746	251,884,702 158,950,878	280,485,578 168,696,998	297,453,276 163,454,693	366,790,780 186,589,412
Operating expenses Median	214,124,908 149,311,209	217,018,314 156,110,414	232,505,271 164,890,568	252,904,190 166,516,854	306,181,785 180,120,888
Net income from service 2 patients (NS2P) ? Median	19,052,610 -964,173	34,866,388 -643,601.5	47,980,307 -116,254	44,549,086 -5,025,862	60,608,995 -1,284,564
NS2P margin ? Median	8.17% -0.62	13.84% -0.29	17.11% 0.18	14.98% -5.07	16.52% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MEMORIAL HERMANN KATY compared to all** acute-care hospitals, from CMS cost reports.
Note: NS2P is considered operating margin by MACPAC. The chart below is interactive: click or touch to see more.

* Data range does not show outliers, which fall beyond the minimum and maximum of the range.
** From cost reports with complete fiscal years. Number of acute-care hospitals available to calculate medians:

2017	2018	2019	2020	2021
3,157	3,092	3,050	3,052	2,566

	2017	2018	2019	2020	2021
Other income* Median Click here to show/hide details	4,895,801 5,089,215	4,665,406 4,572,541	4,391,988 5,268,134	10,836,910 13,092,619	13,715,317 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	239,840 224,999	-57,662 199,009	99,843 206,870.5	1,199,785 194,343	0 249,496
⊳ Line 7: Investments ? ⊳ Median	98,360 299,524	51,207 188,688.5	55,909 370,813	24,482 309,361.5	1,676,323 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	0	0	0	0	0
⊳ Line 11: Rebates and refunds of expenses	0	0	0	0	0
⊳ Line 12: Parking lot receipts	0	0	0	0	0
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	1,060,801	1,241,728	1,326,556	859,590	1,053,638
⊳ Line 15: Revenue from rental of living quarters	0	0	0	0	0
⊳ Line 16: Revenue from sale of medical and surgical supplies	0	0	0	0	0
⊳ Line 17: Revenue from sale of drugs to other than patients	0	0	0	0	0
⊳ Line 18: Revenue from sale of medical records and abstracts	0	0	0	0	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	0	0	0	0	0
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	0	0	0	0	0
⊳ Line 21: Rental of vending machines	0	0	0	0	0
⊳ Line 22: Rental of hospital space	0	0	0	0	0
⊳ Line 23: Gov appropriations ? ⊳ Median	0 1,017,693	0 983,261.5	0 1,173,286	0 1,987,202	0 1,597,664
⊳ Sum Line 24	3,496,800	3,430,133	2,909,680	8,753,053	10,966,430
Total income ? Median	23,948,411 6,586,430	39,531,794 6,767,106	52,372,295 8,419,950	55,385,996 8,094,175	74,324,312 15,162,888
Non-operating expenses Median	0 146,289.5	0 164,857	0 89,880.5	0 106,761	0 31,473.5
Net income Median	23,948,411 6,043,842	39,531,794 5,845,112	52,372,295 7,606,259	55,385,996 7,283,041	74,324,312 14,957,241
Net margin Median	10.05926% 4.62%	15.40900% 4.42%	18.38414% 5.16%	17.96554% 5.2%	19.53301% 9.25%

* About "Other income": Other income, or line 25 in worksheet G3, is the sum of lines 6 through 24. It includes three lines that are considered non-operating revenue - contributions, investments and government appropriations. Medians are included for these three lines. It also contains items that are not central to providing healthcare, such as revenue from parking or gift shops.
"Sum Line 24" is a special case. Called "Other (specify)" in the cost reports, CMS allows for this line to be "subscripted," or divided into sublines like 002400, 002401, 002402. And hospitals do that, up to 100 lines, to detail income (and sometimes negative returns) that are otherwise not covered in the previous "other" lines. Therefore, "Sum Line 24" is the sum of all the lines 24.

Range* of total profit (loss) margins

= Total margin for MEMORIAL HERMANN KATY compared to all** acute-care hospitals, from CMS cost reports.
The chart below is interactive: click or touch to see more.

2017	2018	2019	2020	2021
3,157	3,092	3,050	3,052	2,566

Medicare revenue

Inpatient and outpatient revenue

	2017	2018	2019	2020	2021
All inpatient revenue Median Click here to show/hide details	24,976,417 23,241,334	26,647,309 23,709,545	28,793,978 24,248,380	32,066,967 22,858,541	34,584,679 23,620,613
"All inpatient revenue" is made up of any Medicare payments for routine inpatient, swingbed SNFs, TEFRA, IPF, IRF, inpatient long-term care, CAH and inpatient SNF facilities. Medians are only calculated when there are sufficient facilities reporting revenue.
⊳ Routine inpatient revenue ⊳ Median	24,976,417 21,577,146	26,647,309 22,041,594	28,793,978 22,722,063	32,066,967 21,570,441	34,584,679 22,140,684
⊳ Swingbeds ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Tax Equity and Fiscal Responsibility Act payments (TEFRA) ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Inpatient psychiatric facility (IPF) ⊳ Median	0 1,845,420	0 1,757,392	0 1,738,842	0 1,510,463	0 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	0 3,535,627	0 3,746,588	0 3,782,288	0 3,865,578	0 3,983,889
⊳ Long-term care hospital (LTCH) ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Critical-access hospitals ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Skilled-nursing facilities (SNF) ⊳ Median	0 1,203,033	0 1,215,295	0 1,313,657	0 1,365,298	0 1,179,746
All outpatient revenue Median Click here to show/hide details	9,575,109 11,160,864	10,402,694 11,987,345	11,068,951 12,926,866	9,702,374 11,884,480	10,014,096 13,145,163
"All outpatient revenue" is made up of any payments for routine outpatient, HHA, CMHC, rural health and other federally-qualified health clinics. Medians are only calculated when there are sufficient facilities reporting revenue.
⊳ Routine outpatient revenue ⊳ Median	9,575,109 10,918,923	10,402,694 11,706,976	11,068,951 12,615,917	9,702,374 11,458,116	10,014,096 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	0 1,282,808	0 1,407,728	0 1,341,512	0 1,407,046	0 1,476,867
⊳ Community mental health clinics (CMHC) ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Rural health clinics ⊳ Median	0 618,038	0 697,279	0 690,232	0 684,010	0 670,558
⊳ Other federally qualified health clinics ⊳ Median	0 --	0 --	0 --	0 --	0 --

Other payments

Item	2017	2018	2019	2020	2021
Graduate Medical Education (GME) Median	0 3,284,314	0 3,250,551	0 3,386,837	0 3,360,806	0 3,508,953
Disproportionate-share hospital (DSH) Median	297,434 594,888	460,499 595,761	330,335 577,894	296,442 542,168	670,529 549,667
Outlier Median	204,378 582,572	536,478 538,116	52,127 212,434	74,028 126,559	62,581 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	706,579 3,662,910	62,520 3,730,911	49,736 4,081,319	48,274 4,643,908	71,661 4,389,147
Charity care Median	5,517,535 2,654,636	17,375,678 2,940,659	16,744,274 3,380,215	18,658,054 3,488,738	24,286,794 3,233,405
Uncompensated care (UCC) Median	19,333,034 5,147,790	26,726,289 5,337,617	24,819,549 5,711,082	27,450,802 5,923,418	34,254,382 5,508,107
UCC as a % of operating expenses Median	9.03% 3.24	12.32% 3.12	10.67% 3.21	10.85% 3.3	11.19% 2.86
Total shortfall/UCC Median	20,039,613 9,489,989	26,788,809 9,424,297	24,869,285 10,120,158	27,499,076 11,171,337	34,326,043 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	70,714,803 52,142,039	75,751,557 54,485,252	82,967,024 57,395,589	88,779,262 58,830,919	106,563,570 61,722,907
Salaries as a % of operating expenses Median	33.03 36.68	34.91 36.56	35.68 36.37	35.10 35.93	34.80 35.24
Intern, resident salaries* Median	0 2,598,592	0 2,686,824	0 2,753,773	0 2,937,156	0 2,909,848
Contract intern, resident salaries* Median	0 1,251,927	0 1,186,494	0 1,204,885	0 1,279,653	0 1,469,317
Contract adjusted salaries, direct-care Median	1,044,034 1,449,244	1,174,674 1,475,986	152,932 1,563,078	2,534,042 1,721,954	14,569,616 2,991,828
Contract hours, direct-care Median	15,018.97 22,725	18,539.54 23,018.5	1,513.99 24,503.48	28,809.17 25,026.5	116,944.64 33,786
Contract wages, direct-care Median	69.51 64.67	63.36 64.53	101.01 65.06	87.96 68.97	124.59 88.94

* in an approved program

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Cost reports are self-reported by the facility, are subject to revision and should be considered preliminary.

* Net Service to patients (NS2P) equals net patient revenue minus operating expenses. NS2P is considered the equivalent of operating profit according to the Medicaid and CHIP Payment and Access Commission (MACPAC). See the last paragraph of "Primary Data Sources" on page 55 of Annual Analysis of Disproportionate Share Hospital Allotments to States (PDF).

About medians

Medians are calculated from reports with "complete" fiscal years, or reports with fiscal years of at least 300 days and no more than 420 days.

In cases where there are fewer than 50 values reported, medians are not calculated. For childrens' hospitals, it's when fewer than 20 are reported.

Web app by Tim Broderick | email.